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While Bitcoin price is struggling with overhead resistance at the moment and taking a much needed breather from its bullish rally that began in early April with a $1,000 green candle, the cryptocurrency may have a lot more parabolic momentum left, according to one specific technical indicator.
The technical indicator in question has just given its fifth ever “parabolic” signal on the daily, with the previous four times resulting in massive, sustained price increases in the leading cryptocurrency by market cap. Should the indicator be correct, another powerful parabolic run might just be days away.
Top Goon X Indicator Signals Bitcoin Price to Go Parabolic Once Again
Bitcoin has a strong penchant for going parabolic once the emerging financial asset starts to pick up bullish momentum. Due to how scare the asset is, FOMO, and the speculation fueling violent volatility, Bitcoin price can rise and fall rapidly without ever taking a pause.
These unique conditions help Bitcoin price to skyrocket, as was seen in December 2017 when Bitcoin hit its all-time high price of $20,000 before the bubble popped and a bear market followed.
Related Reading | Analyst: Bitcoin Price Rally Targets Between $12K and $22K Based on BitMEX History
Prior to that highly-publicized parabolic rise, a technical indicator called the Top Goon X had given its fourth “parabolic” daily signal. Before that, the indicator signaled three parabolic spikes between 2012 and the height of the 2013 Bitcoin bubble.
The indicator thus far has been correct four out of four times, and the arrows indicated on the chart clearly demonstrate that the signal preceded a massive parabolic rise, taking the price of Bitcoin significantly higher in a short period of time. In fact, each time it occurred, Bitcoin set a new all-time high in the weeks following.
According to the creator of the technical indicator, the Top Goon X, TradingView author NebraskaGooner says that the tool just gave its fifth ever daily “parabolic” signal.
Top Goon X has only ever given the "Parabolic" daily signal 5 times.
Those 5 times are marked with an arrow on this chart. pic.twitter.com/8CQKgmgcK2
— Nebraskangooner (@Nebraskangooner) May 19, 2019
Since the start of April, the asset has already gone parabolic, rising from $4,200 to over $8,000 in less than 40 days. But the signal triggered only after the initial parabolic spike, suggesting that Bitcoin price has a lot further to climb in 2019.
Bitcoin’s ability to go parabolic is both a blessing and a curse for crypto investors, as such a sharp and powerful rise can bring investors gains unheard of in most financial markets, but when that parabola breaks, Bitcoin and other cryptocurrencies typically fall 80% or more.
Related Reading | Why The Next Bitcoin Bull Run Could Eclipse The Last Crypto Bubble
The emerging asset class, despite its short history, is extremely cyclical in nature, with the most recent bear cycle starting to flip bullish now that Bitcoin reached its bear market bottom and reversed, painting a golden cross, and reviving interest across the market.
Featured image from Shutterstock
